Question | Answer |
assignee | In a contract, the party who receives the rights of another party (assignor) to collect what was contractually agreed on in the original contract. |
assignor | In a Contract, the party who transfers his or her rights to a contract to a third party (an Assignee), giving the assignee the right to collect what was contractually agreed on in the original contract. |
assignment | is the transfer of rights under a contract to a third party. |
Creditor beneficiary | is a third-party who benefits from a contract in which the promisor agrees to pay the promisee's debt. |
Donee beneficiary | is a third party who benefits from a contract in which a promisor agrees to give a gift to the third party. |
Vesting | is the maturing of rights such that a party can legally act on the rights. |
promisor | is the party to a contract who made the promise that benefits the third party. |
promisee | is the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary. |
Contractual duties that cannot be assigned: | 1. Duties personal in nature
2. Duties resulting in performance substantially different from that which the obligee originally contracted.
3. Duties in a contract that expressly forbids delegation. |
Delegation | Is the transfer of a duty under a contract to a third party. |
Delegator | is the party to a contract who transfers his or her duty to a third party. |
delegatee | is the party no in privity to a contract who is the recipient of a transfer of duty to a contract. |
intended beneficiary | is a third party to a contract whom the contracting parties intended to benefit directly from their contract. |
incidental beneficiary | is a third party who unintentionally gains a benefit from a contract between other parties. |
Contractual rights that cannot be assigned | 1. Rights that are personal in nature
2. Rights that would increase the obligor's risks or duties.
3. Rights in a contract that expressly forbids assignment. |
Obligor | is a contractual party who owes a duty to the other party in privity of the contract and now must instead perform for a third party. |
obligee | is a contractual party who is owed a duty from the other party in privity of the contract and now will receive performance from a third party. |
English rule | A rule which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract. |
First-assignment-in-time Rule | A rule which states that the first party granted an assignment is the party correctly entitled to the contractual right. |
Third-party beneficiary | A recipient of contractual benefits who is not one of the contracting parties; created when two parties enter into a contract with the intended purpose of benefiting a third party. |